What are the main WTO valuation methods besides transaction value?

• A. Value of identical or similar goods; computed value; and fallback value.
• B. Transaction value only.
• C. Declared value with insurance.
• D. Market value and freight value.

Answer: (A)

When customs valuation can’t use the price actually paid or payable (the transaction value), the WTO framework turns to other bases in a specific order. First, the value of identical goods is used if there are goods the same in characteristics and function, produced in the same country, sold under the same conditions. If identical goods aren’t available, the value of similar goods—their fundamental characteristics and use are close enough to stand in—serves as the basis. If neither option is workable, the computed value comes into play, which is based on the producer’s cost of producing the goods, plus a reasonable amount for overhead and profit (and appropriate adjustments defined by the rules). As a last resort, the fall-back value is used, determined by reasonable means that are consistent with the Agreement, essentially providing an alternative method when the first three can’t be applied.

So, the main methods besides transaction value are: value of identical goods, value of similar goods, computed value, and fall-back value. The other choices don’t reflect these recognized WTO valuation bases.